how to maximise interest on small lump sum no risk

darentriskit

Sorry for repeatd postings but I,m new and it might take time to get the hang of this - so forgive please

hi everyone I too like this lady have spent the last two days reading this site and you guys are really knowledgeable and helpful - I wonder if anyone can please help me with my question
i'm 57 with 10k ( poss 17k) to make work over the next 8 years till my state retirement age - house is paid no debts and managing ( just ) on small pension
unlikely to work again ( ill health ) BUT and heres the rub i'm so averse to risking this money its almost making me ill - cos neither can I stand looking at it squandering in my measely 1% e-saver natwest account
I reckon only to risk 10 of it as the rest will be my rainy day fund and I,ve seen that santander 123 give 3% , and Skipton ( just ) 5 year bond @ 3.5%
I do not have an ISA and am wondering would a mix of cash and stocks n share ISA be a suitable low risk - if so which can anyone recommend - I simply cannot put any of the capital at risk so it must be secure -

I suppose I need to ask myself am I wiling to let this be "tied up" and not accessible ( ie 3% saving account 5 year) OR have the hassle of moving my whole banking over from natwest to santander - am I just being lazy? pathetic - or are there other products out there which may better suit my risk averse nature - any advice would be gratefully received - thaks so much

very kind regards

steampowered

If you don't want to put your capital at risk then high-interest savings would be best. The benefit of doing it through an ISA is that the interest would not be taxed (though if you are taking in less than £9,440 a year it shouldn't be taxed anyway).

You don't need to move your whole banking - you can keep your current account with Natwest and just open a savings account with another bank. It shouldn't be difficult, and the money can simply be moved back into your current account when the term comes to an end.